2025/05/21 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/21 is to wait and see.

The daily chart picture hasn’t changed much. Will it turn back up and continue the trend, or fall further?
The 4-hour and 1-hour charts have no clear direction.
For longs, buy the dip after price breaks above 194. For shorts, sell the rally after a break below 192.6.
Until then, leaving it alone is best.

If you still want to trade it as a day trade, here are three patterns:

Scenario A
Look to buy the dip after a break above 193.8.
For the shaded area, it depends on how the chart develops from here, but I think you don’t need to get involved there.
Target is 194

Scenario B
Right now, the 15-minute chart leans toward selling.
This pattern treats the recent high as the range high and looks for a short from up there.
Target is 193

Scenario C
Sell the rally after a break below the current range.
Target is around 192.6.

Review

This is selling the rally after the break below in Scenario C.
Getting in anywhere around the red circles would be fine.
Just take profit quickly once the target is reached. 50pips

After that, around 2 am JST (17:00 UTC the previous day), price comes back to the same price zone once more, but you’d have to enter in a somewhat countertrend-trading way, so it’s hard to get in even while watching the chart.
Since the target has already been hit once, there’s a high chance I’d pass on it.